If you are here reading this, you would want to learn more about your credit score. Several things in your life are affected by your credit score. Therefore, you must know more about it to stay updated regarding your traditional credit score check.
You might want to buy a new home, get a loan for your child’s education, or consider getting a new credit card. All of which are dependent on your traditional credit score. With the advent of the internet and easily accessible portals, you can now check your credit score online in just a few steps. Keep reading on to know more about the traditional credit score check.
What is the Cibil Score?
The Credit Information Bureau (India) Ltd. is a credit information agency authorised by the Reserve Bank of India. It provides credit information to businesses, banks, NBFCs, and individuals. It is also a division of TransUnion. The ability to do a CIBIL score check is available online through the other three agencies, but CIBIL is a more popularly preferred agency in the field.
Cibil is a three-digit numerical score, and your Cibil score is determined by your credit history, which includes loan and credit repayments. Cibil scores range from 300 to 850 or 980. The higher your Cibil score, the better.
Range of Traditional Credit Score Check
There are certain commonly accepted guidelines by creditors; however, please note that individual creditors might have their acceptable range for credit scores.
- 720 or higher credit score – excellent credit.
- From 690 to 719 credit score – good credit.
- From 630 to 689 credit score – fair credit.
- 629 or below credit score – poor credit.
The approval of your application depends on other factors, not merely your credit scores. For example, your withstanding debts and individual income also play a vital role in the approval of your application by creditors.
How to Do Traditional Credit Score Check?
You can check your credit score through CIBIL’s official website. Here is your step-by-step guide to doing a Cibil score check-
Step 1: Google the official website of CIBIL.
Step 2: Click on “GET FREE CIBIL SCORE AND REPORT”
Step 3: Create your account by entering your personal information such as email ID, create a new password, enter your full name, select ID type, and enter the number, and fill in your pin code and mobile number.
Step 4: Click on “Accept & Continue”
Step 5: You will receive OTP on your registered mobile number. Enter the OTP and click “Continue”
Step 6: A screen reading “You have successfully enrolled!” will be shown. Click on “Go to Dashboard. You will be able to see your credit score.
Step 7: “myscore.cibil.com” will open on a new tab.
Step 8: Click on “Member Login”, fill in the details, and your Cibil score will be displayed on the screen.
What is the Average Credit Score in India?
According to OneScore, a credit score monitoring platform, the average credit score of Indians was 715 in the financial year 2021-22. The study found that 63% of respondents had a score between 300 and 747, which hasn’t changed since FY21.
How Can You Improve Your Credit Score?
Monitoring or measuring your credit score has the sole purpose of determining your reliability in financial repayments. Your credit score displays how well and timely you make your bill payments and how much of the credit limits are consumed by you. Therefore, here are a few tips to help improve your credit score:
- Make timely payments of your bills.
- Do not exceed your credit card limit. Keep it 30% or lower if possible.
- Focus on keeping a higher average for your credit card account by having to function with older credit accounts.
- Have a mix of credits, i.e., loans and credit cards.
- Keep the applications for credit less if you are applying at once. Try applying at longer durations than in one go.
Factors Influencing Your Credit Score
FICO and VantageScore are the two models of credit scoring. These consider the factors mentioned below in your traditional credit score check. Let us have a brief look at them-
- Timely payments play a significant role in determining your credit score.
- Credit scores are highly influenced by how much you exceed your credit limit. Therefore, it is always advised to keep it lower than 30%.
- Older credit accounts help in getting you higher and better credit scores.
- The types of credits you own are important, such as loans or credit cards.
- The time of your application affects your scores since creditors have to investigate your financial behaviours and check on them extensively.
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Gold Rate Today
As the saying very well goes, Old is gold. No matter how many new methods of investments open up in the market, investment in gold rate today will always top the list for many investors. It is because it has stayed the best means of investment against inflation. Additionally, the price of gold is fixed on an everyday basis.
The London Bullion Market Association is in charge of gold fixing. Prices in US dollars are set daily at 10:30 a.m. GMT and 3 p.m. GMT.